Kenvue Inc. stock research
FY2024 Q2
Kenvue (KVUE) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Sequentially, revenue and gross profit both rose, cost of revenue declined, and gross margin strengthened.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was stable compared to the same quarter one year earlier, while gross profit increased and cost of revenue decreased, resulting in an improved gross margin. Sequentially, revenue and gross profit both rose, cost of revenue declined, and gross margin strengthened.
- The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly lifted gross profit and gross margin. This is evident in both the sequential and year-over-year comparisons.
- Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.1%
Gross profit
$2.4B
Revenue
$4.0B
Cost of revenue
$1.6B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+3.7 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 2, 2023 | $4.0B | $2.2B | $1.8B | 55.5% |
| Oct 1, 2023 | $3.9B | $2.3B | $1.7B | 57.5% |
| Mar 31, 2024 | $3.9B | $2.2B | $1.7B | 57.6% |
| Jun 30, 2024 | $4.0B | $2.4B | $1.6B | 59.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.5 pts
Year-over-year change
Jul 2, 2023
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue relative to revenue, which directly lifted gross profit and gross margin. This is evident in both the sequential and year-over-year comparisons.
Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, cost of revenue was lower, and gross margin improved. Compared to the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the trajectory of cost of revenue, as its decline was the primary factor behind the gross margin improvement in both comparisons.